The auction for these oil blocks was initially launched two years ago. Credit: turkic/Shutterstock.

Congo’s Government has announced the cancellation of an auction for 27 sites that were designated for oil exploration.

The decision was made following late submissions and a lack of adequate competition among bidders.

Congo Hydrocarbons Minister Aime Sakombi Molendo said: “Given the above, I am obliged to declare the cancellation of the ongoing process.”

The cancelled auction involved oil blocks containing an estimated 22bbbl of reserves.

The auction for these oil blocks was initially launched two years ago but was halted after failing to meet expectations.

Congo, located in Central Africa, is known for its wealth of minerals and is believed to possess substantial oil reserves, but oil drilling was limited to a small area on the Atlantic coast and offshore. The auction was expected to expand these activities.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

However, environmental groups have expressed concerns since the auction’s announcement in July 2022, warning of the potential environmental impact both within Congo and globally.

The country is home to much of the Congo Basin rainforest, the second largest in the world, and the world’s most extensive tropical peatland.

These ecosystems sequester significant amounts of carbon dioxide, approximately 1.5 billion tons annually, which equates to around 3% of global emissions.

In April this year, Congo signed an amended production sharing contract with a Chinese company, with the goal of doubling its oil production to 500,000 barrels per day.

Supported by Congo’s Minister of Hydrocarbons, Bruno Jean-Richard Itoua, it marked the commencement of a crucial gas development project aimed at enhancing the nation’s hydrocarbon production capacity.

The project aimed to increase Congo’s export revenues and promote economic growth.